Fiscal Reform Policies Project in Bosnia and Herzegovina

The United States Agency for International Development Mission in Bosnia and Herzegovina (BiH), intends to issue a Request for Proposal (RFP) in anticipation of the procurement of a contract for technical assistance services with a local company that will implement a five-year project in BiH entitled Fiscal Reform Policies Project in Bosnia and Herzegovina.
Local company means a corporation, a nonprofit organization, or another body of persons that (1) is legally organized under the laws of; (2) has as its principal place of business or operations in; and (3) and is (A) majority owned by individuals who are citizens or lawful permanent residents of; and
(B) managed by a governing body the majority of whom are citizens or lawful permanent residents of Bosnia and Herzegovina.
BiH's public finances is a focus area for the EU. Public Administration Reform, which entails public finance reform in Bosnia and Herzegovina, is necessary for establishing effective, accountable and financially efficient services for businesses and citizens. This reform is a precondition for integration into the EU. The EU acquis communautaire considers administrative capacities for implementation of projects and EU reforms to be one of the most important criteria for EU membership. To reform Bosnia and Herzegovina's growing public sector, USAID Mission identified BiH's public finances as one of the key priorities. Presently, the quality of public finances remains low, even though public financial management was somewhat strengthened in last several years. Overall public sector coordination on economic and fiscal policy is weak, thus impeding systemic reforms. BiH's large and inefficient public sector with multiple overlapping competences at the state, entity, cantonal (in the Federation), and municipal levels continues to impose considerable fiscal risk. The management and structure of public spending in Bosnia and Herzegovina remain fundamental concerns. For that reason, fiscal reporting needs to be improved by enhancing the analytical quality of BiH's fiscal policy design. Structural rigidities such as excessive labor taxation and poorly targeted social transfers need substantive reform to spur labor demand. Complicated procedures result in additional costs for operating businesses, and are not appealing to potential investors.
Prospective Contractor will provide technical assistance and/or services to governmental and non-governmental organizations to address the above mentioned issues, by focusing at the following areas:
1. Assistance for improving fiscal coordination and reporting (State and level of entities)
2. Strengthening of the FBiH and RS Treasury Systems
3. Strengthening of the PIFC
4. Strengthening of the Public Debt
5. Increased compliance and improved business environment :
5.1 Reducing tax evasion
5.2 Improvements to business environment through simplification of procedures and processes (payment of taxes)
5.3 Elimination of nuisance taxes
NOTE: All components are combination of analytical, IT development and economic consulting services. All project components require extensive knowledge of the fiscal sector, public administration, and IT development.

Interested local companies are encouraged to submit capability statements in response to this pre-solicitation notice to the contact person indicated not later than March 28, 2014. Capability statements shall include at least a description of the company's services including a list of past contracts for similar work.

The United States Agency for International Development Mission in Bosnia and Herzegovina (BiH), intends to issue a Request for Proposal (RFP) in anticipation of the procurement of a contract for technical assistance services with a local Bosnian company that will implement a five-year project in BiH entitled Fiscal Reform Policies Project in Bosnia and Herzegovina.
Local Bosnian company means a corporation, a nonprofit organization, or another body of persons that--(1) is legally organized under the laws of; (2) has as its principal place of business or operations in; and (3) and is--
(A) majority owned by individuals who are citizens or lawful permanent residents of; and
(B) managed by a governing body the majority of whom are citizens or lawful permanent residents of BiH.
BiH's public finances is a focus area for the EU. Public Administration Reform, which entails public finance reform in Bosnia and Herzegovina, is necessary for establishing effective, accountable and financially efficient services for businesses and citizens. This reform is a precondition for integration into the EU. The EU acquis communautaire considers administrative capacities for implementation of projects and EU reforms to be one of the most important criteria for EU membership. To reform Bosnia and Herzegovina's growing public sector, USAID Mission identified BiH's public finances as one of the key priorities. Presently, the quality of public finances remains low, even though public financial management was somewhat strengthened in last several years. Overall public sector coordination on economic and fiscal policy is weak, thus impeding systemic reforms. BiH's large and inefficient public sector with multiple overlapping competences at the state, entity, cantonal (in the Federation), and municipal levels continues to impose considerable fiscal risk. The management and structure of public spending in Bosnia and Herzegovina remain fundamental concerns. For that reason, fiscal reporting needs to be improved by enhancing the analitycal quality of BiH's fiscal policy design. Structural rigidities such as excessive labor taxation and poorly targeted social transfers need substantive reform to spur labor demand. Complicated procedures result in additional costs for operating businesses, and are not appealing to potential investors.
Prospective Contractor will provide technical assistance and/or services to governmental and non-governmental organizations to address the above mentioned issues, by focusing at the following areas:
1. Assistance for improving fiscal coordination and reporting (State and level of entities)
2. Strengthening of the FBiH and RS Treasury Systems
3. Strengthening of the PIFC
4. Strengthening of the Public Debt
5. Increased compliance and improved business environment :
5.1 Reducing tax evasion
5.2 Improvements to business environment through simplification of procedures and processes (payment of taxes)
5.3 Elimination of nuisance taxes
NOTE: All components are combination of analytical, IT development and economic consulting services. All project components require extensive knowledge of the fiscal sector, public administration, and IT development.

Interested Bosnian companies are encouraged to submit capability statements in response to this pre-solicitation notice to the contact person indicated not later than March 28, 2014. Capability statements shall include at least a description of the company's services including a list of past contracts for similar work.